EQUINOR ASA-SPON ADR (EQNR)
US29446M1027 - ADR
Overall EQNR gets a fundamental rating of 5 out of 10. We evaluated EQNR against 204 industry peers in the Oil, Gas & Consumable Fuels industry. EQNR scores excellent on profitability, but there are some minor concerns on its financial health. EQNR is cheap, but on the other hand it scores bad on growth. This makes EQNR very considerable for value investing!
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
EQNR had a positive operating cash flow in the past year.
EQNR had positive earnings in 4 of the past 5 years.
In the past 5 years EQNR always reported a positive cash flow from operatings.
1.2 Ratios
EQNR's Return On Assets of 7.18% is fine compared to the rest of the industry. EQNR outperforms 62.07% of its industry peers.
Looking at the Return On Equity, with a value of 22.05%, EQNR is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.71%, EQNR belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQNR is significantly above the industry average of 22.60%.
The 3 year average ROIC (34.03%) for EQNR is well above the current ROIC(25.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 22.05% | ||
| ROIC | 25.71% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)34.03%
ROIC(5y)23.28%
1.3 Margins
Looking at the Profit Margin, with a value of 9.14%, EQNR is doing worse than 60.59% of the companies in the same industry.
In the last couple of years the Profit Margin of EQNR has grown nicely.
With a decent Operating Margin value of 31.11%, EQNR is doing good in the industry, outperforming 63.55% of the companies in the same industry.
In the last couple of years the Operating Margin of EQNR has grown nicely.
EQNR's Gross Margin of 52.39% is in line compared to the rest of the industry. EQNR outperforms 57.14% of its industry peers.
EQNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.11% | ||
| PM (TTM) | 9.14% | ||
| GM | 52.39% |
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EQNR is creating value.
The number of shares outstanding for EQNR has been reduced compared to 1 year ago.
Compared to 5 years ago, EQNR has less shares outstanding
The debt/assets ratio for EQNR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.71, EQNR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of EQNR is 4.35, which is a neutral value as it means it would take EQNR, 4.35 years of fcf income to pay off all of its debts.
EQNR has a better Debt to FCF ratio (4.35) than 62.56% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that EQNR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, EQNR perfoms like the industry average, outperforming 45.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.71 |
ROIC/WACC4.19
WACC6.13%
2.3 Liquidity
EQNR has a Current Ratio of 1.53. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.53, EQNR is in the better half of the industry, outperforming 65.02% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that EQNR should not have too much problems paying its short term obligations.
The Quick ratio of EQNR (1.43) is better than 67.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -30.00% in the last year.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.15% yearly.
EQNR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.29%.
Measured over the past years, EQNR shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
3.2 Future
The Earnings Per Share is expected to decrease by -5.12% on average over the next years.
EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.10% yearly.
EPS Next Y-1.06%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EPS Next 5Y-5.12%
Revenue Next Year-3.63%
Revenue Next 2Y-5.53%
Revenue Next 3Y-4.68%
Revenue Next 5Y-7.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.72, the valuation of EQNR can be described as very cheap.
Based on the Price/Earnings ratio, EQNR is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.
EQNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.20.
Based on the Price/Forward Earnings ratio of 6.71, the valuation of EQNR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 79.80% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EQNR to the average of the S&P500 Index (23.84), we can say EQNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
99.01% of the companies in the same industry are more expensive than EQNR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.26 | ||
| EV/EBITDA | 0.91 |
4.3 Compensation for Growth
The decent profitability rating of EQNR may justify a higher PE ratio.
EQNR's earnings are expected to decrease with -2.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.06%, EQNR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.51, EQNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.21, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 34.90%!
EQNR has been paying a dividend for at least 10 years, so it has a reliable track record.
EQNR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)34.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQNR pays out 104.28% of its income as dividend. This is not a sustainable payout ratio.
EQNR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP104.28%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EQUINOR ASA-SPON ADR
NYSE:EQNR (11/12/2024, 4:00:41 PM)
After market: 22.52 0 (0%)22.52
-0.29 (-1.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap61.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 22.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.11% | ||
| PM (TTM) | 9.14% | ||
| GM | 52.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y